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NAB Irish subsidiary found guilty of tax evasion

NAB Irish subsidiary found guilty of tax evasion

(3 August 2004 – Europe) Following a six year investigation into allegations of overcharging and tax evasion, National Irish Bank (NIB) has been ordered by Irish authorities to pay 64 million euros (A$110 million) in costs. The head of Ireland’s Corporate Enforcement, Paul Appleby, said the bank, which is wholly owned by National Australia Bank, had paid the state and bank customers 30 million euros and had to pay another 34 million euros in costs.

"The inspectors’ findings largely confirm the thrust of the allegations made against the bank and the company in 1998," Appleby said.

The Director of Corporate Enforcement’s report into the Irish bank found that there were clear examples of misconduct regarding NIB’s role in assisting their customers in defrauding the state of tax income. The misconduct took place between 1988 and 1998.

NIB chief executive Don Price said the bank had worked with the Director of Corporate Enforcement to address the issues in the report, develop reimbursement schemes and implement a wide ranging compliance program.

"The events go back a long time. We have literally rebuilt National Irish Bank from the ground up. It is now a very different organisation," he said.

"While cooperating and working with the investigation, we also instigated a comprehensive change program and introduced new systems and controls, transforming how we operate as a business," Price said.
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